Abstract

Germany is an innovation powerhouse—at least according to the Global Innovation Index (2015) and the OECD Science, Technology and Industry Scoreboard (2015). Good news, one would think, as relentless product turnover, Internet-mediated services and disruptive business models mean that without innovation a country cannot remain competitive and flourish. But although the country may be performing well in incremental innovation, entrepreneurship and the establishment of disruptive new businesses is another story. The volume of new business startups, including creative and agile young Internet startups, is surprisingly low in Germany. Why might this be the case? Is Germany resting on its industrial laurels, or are there other reasons: a conservative culture or poorly designed government policies, perhaps?